UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39405 MarketWise, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 87-1767914 (State or other jurisdiction of incorpor ...

$729.9 $548.8 $459.5 $310.1 $151.4 $100.9 2019 2020 2021 2022 4Q21 4Q22 adjusted CFFO Conversion³ (LOW Capex) 99.7% 99.8% 99.9% 99.9% 100.0% 98.3% | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|--------|-------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | $134.3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $69.0 | | $59.3 | | | | | | | | | | | | | $5.0 | $18.4 | | | | | | | 1. Billings represents amounts i ...

Financial Performance - Total net revenue decreased by $36.8 million, or 6.7%, from $549.2 million in 2021 to $512.4 million in 2022, primarily due to a $38.1 million decrease in term subscription revenue[268]. - Net revenue for the year ended December 31, 2022 was $512.4 million, a decrease of $36.8 million or 6.7% from $549.2 million in 2021, primarily due to a $38.1 million decrease in term subscription revenue[346]. - Net income for the year ended December 31, 2022 was $101.2 million, a significant improvement compared to a net loss of $953.9 million in 2021[343]. - The company reported a net income attributable to MarketWise, Inc. of $18.0 million for the year ended December 31, 2022, compared to a net loss of $1.0 billion in 2021[342]. Subscriber Metrics - As of December 31, 2022, the paid subscriber base was 841 thousand, down 130 thousand, or 13.4%, compared to 972 thousand in 2021[281]. - Total Paid Subscribers decreased by 130 thousand, or 13.4%, to 841 thousand as of December 31, 2022 compared to 972 thousand in 2021[298]. - Free Subscribers increased by 2.0 million, or 14.6%, to 15.7 million as of December 31, 2022 compared to 13.7 million in 2021[295]. - Average revenue per user (ARPU) decreased by 30.1% from $742 in 2021 to $519 in 2022[283]. - The average annual free-to-paid conversion rate was approximately 1% to 2% between 2020 and 2022, with a cumulative free-to-paid conversion rate of 4%[282]. - Subscriber count churn ranged from approximately 1.8% to 2.7% per month between 2020 and 2022, with a net revenue retention rate averaging over 80%[301]. Cash Flow and Operating Activities - Net cash provided by operating activities decreased by $15.3 million, or 24.0%, from $63.6 million in 2021 to $48.4 million in 2022[265]. - The company reported a net cash provided by operating activities of $48.4 million in 2022, down 24.0% from $63.6 million in 2021[377]. - Cash flow from operations increased by $7.8 million, or 13.9%, from $55.9 million in 2020 to $63.6 million in 2021[270]. - Adjusted CFFO decreased by $137.8 million, or 69.9%, from $197.1 million in 2021 to $59.3 million in 2022, driven by the decrease in Billings[266]. - Adjusted CFFO Margin was 12.9% in 2022, down from 27.0% in 2021, reflecting the decrease in Adjusted CFFO[371]. Revenue Composition - Approximately 36% of Billings in 2022 came from membership subscriptions, down from 42% in 2021[309]. - Membership subscription revenue increased due to the recognition of deferred revenue from prior years, contributing positively to overall revenue for 2022[347]. - Revenue from Buttonwood Publishing, acquired in August 2022, was $2.0 million for the year ended December 31, 2022, indicating successful integration of the new business[346]. Operating Expenses - Total operating expenses decreased significantly by $1.1 billion or 72.0% from $1.5 billion in 2021 to $425.1 million in 2022, driven by reductions in cost of revenue and general and administrative expenses[349]. - Cost of revenue decreased by $176.6 million or 73.8% from $239.3 million in 2021 to $62.7 million in 2022, primarily due to a $170.5 million decrease in stock-based compensation expense related to Class B Units[350]. - Sales and marketing expenses decreased by $61.6 million or 20.7% from $296.9 million in 2021 to $235.3 million in 2022, largely due to a $46.4 million decrease in stock-based compensation expense related to Class B Units[352]. - General and administrative expenses decreased by $845.4 million or 88.0% from $960.2 million in 2021 to $114.8 million in 2022, reflecting significant cost reduction initiatives[349]. - Research and development expenses increased by $1.3 million or 17.8% from $7.5 million in 2021 to $8.8 million in 2022, as the company continues to invest in its platform[349]. Future Outlook and Financing - The company expects fluctuations in Adjusted CFFO and Adjusted CFFO Margin in future periods as it invests in its growth strategy[376]. - Future capital requirements will depend on subscription growth rates and the introduction of new products[386]. - The company may need to seek additional equity or debt financing in the future, which could affect its ability to compete successfully[387]. Acquisitions and Goodwill - Revenue from Chaikin Analytics, acquired in January 2021, was $7.5 million for the year ended December 31, 2021[358]. - Goodwill is recorded as the excess of purchase consideration over the fair values of identifiable assets and liabilities acquired, requiring significant estimates and assumptions[420]. Stock-Based Compensation - Total stock-based compensation expenses decreased to $9.0 million in 2022 from $1,063.4 million in 2021[322]. - Class B Units were historically classified as liabilities and remeasured to fair value, impacting stock-based compensation expense[421]. - The fair value of Class B Units was estimated using a two-step valuation approach, considering market and discounted cash flow methods[424].

MarketWise, Inc. (NASDAQ:MKTW) Q4 2022 Earnings Conference Call March 30, 2023 11:00 AM ET Company Participants Jonathan Shanfield - Vice-President of Investor Relations Amber Mason - Chief Executive Officer Stephen Park - Interim Chief Financial Officer Lee Harris - Senior Vice President of Financial Planning & Analysis Conference Call Participants Jason Helfstein - Oppenheimer Michael Falco - JMP Securities Alex Kramm - UBS Sam Salvas - Needham & Company Operator Thank you for standing by, and welcome to ...

Financial Data and Key Metrics Changes - For Q3 2022, the company reported revenues of $119.9 million, a decline of 14.7% compared to $140.7 million in Q3 2021 [9][31] - Billings decreased by 23.9% year-over-year to $105.1 million, down from $139.1 million in the previous year [10][31] - Adjusted cash flow from operations was $13.1 million, down from $34.7 million in the same quarter last year, with an adjusted CFFO margin of 12.5% compared to 25.2% last year [10][42] Business Line Data and Key Metrics Changes - The decline in revenue was primarily driven by a $16.9 million decrease in term subscription revenue [31] - Approximately 33% of billings came from membership subscriptions, while 66% came from term subscriptions, indicating a shift from the previous year where 45% were from membership subscriptions [33] Market Data and Key Metrics Changes - The company noted a decline in consumer engagement and fewer new subscribers due to ongoing market volatility and reduced direct marketing spend [10][28] - Landing feature visits were approximately 27 million, down 15% from both Q1 and Q2 2022 [29] Company Strategy and Development Direction - The company is focusing on cost reduction initiatives targeting $74 million in total expense savings, with a goal of reducing overhead by approximately $37 million [34][36] - New content was launched, including five new publications addressing current market themes such as healthcare investing and options trading strategies [15] - The integration of data science and AI into operations is ongoing, aimed at improving conversion rates and reducing customer churn [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that as the economy stabilizes and inflation is controlled, investor engagement will return [8] - The company is managing its business prudently by focusing on efficiencies and maintaining margins in the current market environment [13][46] Other Important Information - A tender offer was initiated to exchange all outstanding warrants for shares of Class A common stock, increasing public shares by approximately 26% [21][45] - The company executed a small acquisition of a publishing group to enhance its existing media entity [24] Q&A Session Summary Question: Concerns about cash costs and future expectations - Management acknowledged the increase in cash costs and explained that one-time items affected the cash flow calculations, with expectations for continued cost reductions [51][54] Question: Impact of inflation on subscriptions - Management indicated that while high-value customers are less sensitive to inflation, overall engagement has slowed due to market volatility [76][80] Question: Monetization opportunities beyond subscriptions - Management highlighted the potential for new revenue streams through the recently launched marketwise.com, which could enhance subscriber acquisition and ad-based revenue [85][86]

MarketWise 3Q22 Investor Presentation IMPORTANT INFORMATION Cautionary Statement Regarding Forward-Looking Statements 2 This presentation (this "Presentation") contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the financial position, business strategy, and the plans and objectives of management for future operations of MarketWise, Inc. (the "Company," "we," "us," or "our"). These forward-looking statements generally are identified by the wo ...

Call Start: 17:00 Call End: 17:54 March 1, 0000 ET Q2 2022 Earnings Conference Call August 8, 2022 17:00 ET Company Participants Jonathan Shanfield - Director of Investor Relations Mark Arnold - Chairman & Chief Executive Officer Dale Lynch - Chief Financial Officer Conference Call Participants Devin Ryan - JMP Securities Kyle Peterson - Needham & Company Jeff Meuler - Baird Jason Helfstein - Oppenheimer & Company Operator Thank you for standing by and welcome to MarketWise Second Quarter 2022 Earnings Call ...

MarketWise 2Q22 Investor Presentation IMPORTANT INFORMATION Cautionary Statement Regarding Forward-Looking Statements 2 This presentation (this "Presentation") contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the financial position, business strategy, and the plans and objectives of management for future operations of MarketWise, Inc. (the "Company," "we," "us," or "our"). These forward-looking statements generally are identified by the wo ...

For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-39405 MarketWise, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 87-1767914 (State or other jurisdiction of incorpora ...

MarketWise 1Q22 Investor Presentation IMPORTANT INFORMATION Cautionary Statement Regarding Forward-Looking Statements 2 This presentation (this "Presentation") contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the financial position, business strategy, and the plans and objectives of management for future operations of MarketWise, Inc. (the "Company," "we," "us," or "our"). These forward-looking statements generally are identified by the wo ...